Zest Protocol Launches Capped Mainnet Demo for Native Bitcoin-Backed Loans

Zest Protocol has launched a capped mainnet demo of its Bitcoin Collateral Vaults, allowing users to borrow USDC on Ethereum using native Bitcoin without wrapping or bridging. Collateral deposits are currently capped at 0.001 BTC per wallet, valued at approximately $86 at launch, to evaluate protocol safety. The architecture utilizes self-custodial Taproot vaults on Bitcoin Layer 1 alongside Ethereum smart contracts to manage loans and execute partial liquidations. Settlements are initially verified by independent guardians, with plans to transition to zero-knowledge BitVM proofs ahead of a full institutional rollout.